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Programmatic spend to rise in Europe

News, 07 August 2015

BRUSSELS: Advertisers, agencies and publishers in Europe are expected to increase their programmatic budgets significantly over the next 12 months, a new survey has established.

After polling more than 1,000 industry practitioners in 29 markets, the Interactive Advertising Bureau (IAB) Europe reported that more than 90% expect to increase their programmatic investment or revenue over the coming year. 40% expect an increase of about a third.

Agencies see themselves at the forefront of programmatic adoption, the report said. About three-quarters (77%) are investing up to 40% of their digital display adspend via the platform while 4-in-10 spend over 80% of their total budget on digital.

A similar proportion (70%) of agencies are using the same success metrics for programmatic and non-programmatic display campaigns. So too are the majority (62%) of advertisers.

They are turning to programmatic to scale their campaigns, lower the cost of media and to gain audience targeting benefits, the survey revealed.

Indeed, improving efficiency stands out as a key motivation for the industry to invest in programmatic – advertisers (78%) and agencies (85%) want targeting efficiencies, in particular, while publishers concentrate on maximising media value (60%) and trading and operational efficiencies (52%).

Advertisers are less bullish than agencies in terms of their investment in digital. Just over half (54%) are committing between 21% and 60% of their advertising budget to digital, although a fifth (21%) are committing more than 61%.

Looking at how the industry prioritises programmatic, agencies prioritise it highly with a third (32%) saying it is a top priority compared to just 1-in-10 of advertisers.

There is also a marked difference between those with a global remit and local respondents. Just under a quarter of survey participants with an international remit cite programmatic as a top priority compared to over a third (34%) of those with a local remit.

Commenting on the report, Graham Wylie, chairman of IAB Europe's programmatic trading committee, said the research showed "the potential for programmatic to be a strategic differentiator for European businesses rather than a tactical tool".

Data sourced from IAB Europe; additional content by Warc staff